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Greenspan Seeks Commission
To Set Cost-of-Living Rates

Panel Would Adjust Rates for Taxes,
U.S. Benefits; CPI Wouldn't Be Used

By

Jacob M. Schlesinger Staff Reporter of The Wall Street Journal

Updated Jan. 31, 1997 12:01 a.m. ET

WASHINGTON -- Federal Reserve Chairman Alan Greenspan, citing questions about the accuracy of the government's main inflation gauge, called for the creation of an independent commission to set annual cost-of-living adjustment rates for taxes and federal benefits such as Social Security.

The new number would be separate from the consumer price index, which is currently used to determine cost-of-living adjustments, Mr. Greenspan said in...